Citizens Insurance Terms (Florida Glossary)

🏛️ Citizens Property Insurance Corporation

Florida’s state-backed insurer of last resort. Provides coverage when private carriers decline or withdraw from the market.

📉 Eligibility

Rules determining whether a homeowner qualifies for Citizens. You must be denied by private carriers or receive quotes more than 20% higher than Citizens.

📈 20% Rule

A homeowner is eligible for Citizens if the lowest private-market quote is more than 20% higher than the Citizens premium.

📝 Eligibility Clearinghouse

A system that checks your application against participating private carriers before Citizens can offer coverage.

📬 Depopulation

The process where private carriers “take out” policies from Citizens to reduce the size of the state-backed insurer.

🔄 Takeout Offer

An offer from a private carrier to assume your Citizens policy. If the private carrier’s premium is not more than 20% higher, you must accept it.

🚫 Non-Renewal Due to Takeout

When Citizens non-renews your policy because a private carrier has offered to assume it.

🌪️ Wind-Only Policy

A Citizens policy that covers only wind damage in coastal areas where private carriers will not write wind coverage.

🏠 Multi-Peril Policy (HO-3)

A standard Citizens homeowners policy covering wind, fire, theft, liability, and more — similar to private HO-3 policies.

💧 Citizens Flood Requirement

Homes with Coverage A of $600,000+ must carry flood insurance, even in low-risk zones. This requirement expands to $700,000+ in 2027.

📄 Managed Repair Program (MRP)

Citizens’ program that requires using approved contractors for certain water damage claims.

🧾 Loss Verification

Citizens may request documentation or inspections to verify past claims or property condition before binding coverage.

🧱 Roof Age Requirements

Citizens has strict roof rules. Most shingle roofs must be under 15 years old unless they pass a roof inspection proving 5+ years of remaining life.

🧭 PRP (Personal Residential Policy)

Citizens’ main policy form for homeowners, condos, renters, and dwelling fire policies.

📦 Dwelling Fire (DP-3)

A Citizens policy for rental properties or homes that don’t qualify for HO-3 coverage.

🧮 Rate Glidepath

A law limiting Citizens’ annual rate increases (currently capped around 12–14% per year).

📊 Actuarially Sound Rate

The rate Citizens would charge without legislative caps — typically much higher than the glidepath rate.

🔍 Inspection Requirement

Citizens may require a 4-point, roof certification, or full home inspection before binding or renewing coverage.

⚠️ Ineligible Risk

A property that does not meet Citizens’ underwriting guidelines — often due to roof age, condition issues, or claims history.

🧾 Policyholder Surcharge

An additional charge that may be applied to Citizens policyholders if the company experiences a deficit after a major storm.

💸 Emergency Assessment

A statewide surcharge applied to all Florida insurance policies (not just Citizens) if Citizens faces a major deficit.